A Promissory Note Is the Document Signed When a Bank

question 57

True/False

A promissory note is the document signed when a bank loan is executed and it specifies financial aspects of the loan,and items such as collateral and other terms and conditions.

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Definitions:

Cash Balance

The amount of cash that a company or an individual has available at any given time.

Journal Entry

An accounting record of a transaction where the total amounts in the debit and credit columns are equal.

NSF Check

A check that cannot be processed due to insufficient funds in the account of the issuer.

Internal Control

Processes and procedures implemented by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.